Saving Main Street from the Silver Tsunami
More than 3 million small business owners will retire in the next decade, potentially taking $10 trillion in business revenue with them.
Without coordinated support, viable Main Street businesses will close, erasing jobs and local wealth. We’re taking action to ensure that every business in the U.S. is given the opportunity to transition successfully.
What prevents profitable businesses from successful transitions?
The overwhelming majority of small businesses aren’t ready to transition to new ownership successfully. Fewer than 20% have a succession plan, and the same barriers preventing access to working capital and commercial loans will prevent successful ownership transitions. Existing resources weren’t built to solve this problem.
The majority of businesses are too small for existing systems
Roughly 80% of small businesses are solo or micro-employer firms valued under $2 million. They’re invisible to traditional brokers, outside the scope of search funds and ETA programs, and too small for most employee ownership programs.
Business records don’t meet lending standards
Informal recordkeeping and incomplete documentation block acquisition financing. Buyers can’t get loans, even for profitable businesses with strong cash flow.
Listing platforms prioritize exposure, not successful sales
Online platforms list 50,000-60,000 businesses, but 90% never sell due to missing diligence, unprepared sellers, unqualified buyers, and/or a lack of coordinated advisory and capital support.
We’re building the infrastructure the market is missing
Individual organizations can help a handful of businesses transition successfully. Collectively, we can save Main Street at scale.
The next chapter: Keeping local small businesses thriving
With seller readiness infrastructure and coordinated collaboration at scale, Main Street businesses transition to new ownership instead of closing, preserving billions of dollars of economic activity.
Businesses remain open
Profitable enterprises continue serving their communities instead of closing when owners retire. Neighborhood mainstays and essential services stay intact, preventing the erosion of local commerce.
Workers keep their livelihoods
Employees don’t lose jobs because a business closed unnecessarily. Families maintain income stability. Communities avoid the cascading economic damage that follows when viable employers shut down.
Wealth stays in the community
Retiring owners receive fair value for decades of work and income that supports retirement. Community-rooted buyers build wealth through ownership. Capital circulates locally rather than evaporating, strengthening regional economies.
Resources
Learn more about how the Silver Tsunami will impact Main Street and what small business owners and the lenders and organizations that support them can do to prepare.
For lenders and organizations:
Why small business acquisition loans need a different approach
Grow America has built its practice around business acquisitions. We have years of experience structuring these types of deals, which means we know how to navigate the complexities that trip up conventional lenders and can spot common pitfalls before they become problems.
The Silver Tsunami: Your SBA Lending Goldmine
The sheer number of retiring adults means that their businesses will be up for grabs, either through a transition plan or through an outside purchase.
For small business owners:
Your Complete Guide to Selling Your Business (Even If You’re Not Ready Yet)
Even if you don’t plan on selling soon, setting your business up for success now can prepare you for a sale down the road.
How to Sell Your Business Part 1: Formalizing Business Practices
Formalizing your business might feel like a big lift, but the payoff is a business that runs more efficiently today and commands a higher valuation tomorrow.
How to Sell Your Business Part 2: 5 Types of Buyers for Your Business When You’re Ready to Sell
When you understand who the potential buyers are and how those sales typically unfold, you can take practical steps now to position the company and the future owners for success.
Join the collaboration
No single organization can solve this crisis at scale. We’re seeking early collaborators—CDFIs, lenders, funders, and community partners—to support the buildout of the infrastructure Main Street needs.
Small business lenders and CDFIs
Sign up for updates on the our work in this area.
Philanthropic organizations
Invest in the infrastructure that enables the collaboration at scale that’s needed to move the needle. For more information on how to get involved, contact Bryan Doxford, President and Managing Director of Lending, Grow America Fund, at bdoxford@growamerica.org.